SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Perform basic forex market calculations 
SAQA US ID UNIT STANDARD TITLE
13375  Perform basic forex market calculations 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is for people who are able to process basic mathematics in Foreign Exchange markets.

The qualifying learner is capable of:
  • Demonstrating an understanding of the conventions and calculations of Spot Exchange transactions
  • Demonstrating an understanding of the conventions and calculations of Forward Outright transactions
  • Explaining and applying the conventions and calculations of Foreign Exchange Swap transactions 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    The learner must be able to locate and apply company policies and procedures as they relate to the Foreign Exchange market. This unit standard is intended for those individuals who are new entrants into the Forex market, who wish to learn the basic computational techniques employed in Forex. 

    UNIT STANDARD RANGE 
    Within the context of a treasury, foreign exchange or investment environment. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate an understanding of the conventions and calculations of spot exchange transactions 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The base currency and direct/indirect quotation conventions are explained. 

    ASSESSMENT CRITERION 2 
    2. Bid-offer quotes and spreads are correctly interpreted. 

    ASSESSMENT CRITERION 3 
    3. Bid-offer cross rates are calculated. 

    ASSESSMENT CRITERION 4 
    4. Profit or loss on positions is calculated. 

    SPECIFIC OUTCOME 2 
    Demonstrate an understanding of the conventions and calculations of forward outright transactions 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of cost of carry, the various funding sources, and this calculation's role in the derivatives market is explained. 

    ASSESSMENT CRITERION 2 
    2. Forward points and forward discounts/premiums are defined. 

    ASSESSMENT CRITERION 3 
    3. Market quotations are interpreted. 

    ASSESSMENT CRITERION 4 
    4. Bid-offer cross rates are derived. 

    ASSESSMENT CRITERION 5 
    5. The interest rate parity theory is applied to pricing. 

    ASSESSMENT CRITERION 6 
    6. The arbitrage-free forward price is correctly calculated. 

    SPECIFIC OUTCOME 3 
    Explain and apply the conventions and calculations of Foreign Exchange swap transactions 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The swap structure and market quotation conventions are explained. 

    ASSESSMENT CRITERION 2 
    2. The relationship between swap prices and money market rates is explained. 

    ASSESSMENT CRITERION 3 
    3. Bid-offer cross rates are correctly derived. 

    ASSESSMENT CRITERION 4 
    4. The applications of Foreign Exchange swaps are demonstrated. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standards shall be from the relevant education and Training Quality Assurer through formative and summative assessment by a registered Assessor. Assessment should be contextual and be conducted in the workplace as far as possible.

    The relevant NSB and SGB should be notified of any feedback related to this qualification.
  • Assessors must be registered as an Assessor with the relevant ETQA
  • Moderators must be registered as assessors with the relevant ETQA
  • Training providers must be accredited by the relevant ETQA
  • Moderation should include both internal and external moderation where applicable
  • The relevant ETQA will co-ordinate all moderation activities in accordance with their policies and procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    Learners can:

    1. Apply an understanding of the conventions and calculations of spot exchange transactions and forward outright transactions.
    2. Process basic mathematics in foreign exchange markets. 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems relating to the completeness, correctness and accuracy of the information received. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using basic mathematical and/or language skills in the modes of oral and/or written persuasion when communicating with relevant parties regarding the application. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is able to use science and technology effectively and critically in applying the use of the company system to process applications. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Terminology:

    The Learner should be able to define and contextualise the following terms:

    Arbitrage, Bid offer cross rates, Forward, Forward points, Outright rates, Parity Theory, Spot Exchange Transactions, Swap prices.

    Values:

    The use of tasks and materials in the learning event plan should not discriminate against learners on any grounds prescribed in the Bill of Rights and should promote the orientations outlined in the critical cross-field outcomes. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Reregistered  2023-06-30  BANKSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Absa Learning & Development 
    2. Bidvest Bank 
    3. Chartall Business College 
    4. Cornerstone Performance Solutions (Pty) Ltd 
    5. Felix Risk Training Consultants 
    6. Firstrand Bank - Benmore 
    7. Nedbank Ltd 
    8. The Facilitation Workshop 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.